Stock prices fell on global stock markets last week because at the beginning of the new year there was no news that could support further growth in stock market indices, after the strong jump last year.

The Dow Jones Industrial Average fell 0.6 percent last week to 42,732 points, while the S&P 500 slipped 0.5 percent to 5,942 points and the Nasdaq Composite Index fell 0.5 percent to 19,621 points.

In the past year, these indices have grown strongly – the Dow Jones by more than 13 percent, the S&P 500 by more than 24 and the Nasdaq by about 30 percent. Such strong growth is thanks to euphoria over the development of artificial intelligence, the reduction of interest rates by the US central bank and the victory of Donald Trump in the US presidential election, as he is expected to contribute to economic growth with his policies and the implementation of deregulation in several areas.

However, after the Fed announced that it plans to slow the pace of interest rate cuts in 2025, stock prices have come under pressure. Because of this, the so-called “Santa Claus’s Rise”, the usual market rally at the end of the year and the new year.

There was no new significant news in the first days of 2025, and the direction of the stock indices depended mainly, as last year, on the movement of the share prices of the largest technology companies. Share prices also fell on most European stock exchanges last week. Although London’s FTSE index strengthened by 0.9 percent, to 8,223 points, Frankfurt’s DAX slipped by 0.4 percent, to 19,906 points, and Paris’ CAC 1 percent, to 7,282 points.